The National Housing Federation has said Newham's plans to relocate tenants out of London "is a desperate move which demonstrates the scale of the housing crisis".
It urged the Government and the London Mayor to take urgent action.
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The footage was apparently shot in south London showing a motorist eating a bowl of cereal, and texting whilst sitting in traffic.
The Prime Minister is trying to curb the money laundering that goes on at the highest ends of the London property market.
The average increase across the capital is 9.2% this year - with areas in the east and south of the city up by 15-16%.